Recommended Ways to Use Your Tax Return

By Product Expert | Posted in Finance, Tips and Tricks on Wednesday, February 5th, 2020 at 10:14 am
Close up of coins, a clock, and the word "Tax"

How Should I Spend My Tax Refund?

After you file your taxes, you may receive a big tax return in the mail or through direct deposit. For some, that may raise some questions. How should I spend my tax refund? How much of it should I save? Here are some recommended ways to use your tax return.

[ READ MORE: Where to Get a Used Car Loan in Central Florida ]

Pay off Necessities

Are you financially struggling this month? The first thing that should be addressed are your basic necessities. This includes any rent, mortgage, food, electricity, water, and phone bills you may have fallen behind on. By taking care of this debt, you will rest easy knowing that you and your family are taken care of. Remember, necessities do not include any wants like game consoles and vacations.

Put Some in Savings or in an Emergency Fund

Knowing you have a safety net if something unexpected happens will surely reduce your financial stress. If you don’t already have an emergency fund, it’s a good idea to start one. Afterall, you never know when you’ll need car repairs, end up in the hospital, or even lose your job.

If you have an emergency fund and it’s looking healthy, consider putting some of your tax return into your savings account or towards retirement. The more you contribute to these accounts early on, the better off you’ll be later.

Tax return check on top of a tax form

Use as a Down Payment for a Different Car

One of the best times of the year to purchase a vehicle is tax season. Why is this? Saving for a down payment for a vehicle is a stressful and time-consuming task for many car buyers. Many shoppers will consider their tax return as their down payment. Therefore, all that’s left is budgeting for the monthly payments.

[ Get Pre-Approved for a Used Car Loan ]

Of course, you should always take care of your needs first. If you need a reliable vehicle to get around for work and running errands, check out our large selection of used vehicles. Found one that may be a good match? Let us know which one and we will provide more details and help you take it for a test drive. Is the vehicle right for you? Talk with us about your financial situation and we will offer financing that is affordable to you.

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